Synthetic Securitizations
In these sophisticated structures, our clients gain several benefits, including credit
protection, capital relief and exposure to an asset without having the obligation to retain ownership of
the asset.
Credit Default Swaps (CDS)
A CDS is a financial guaranty structured as a derivative. It is a pure synthetic - that is, there is no
exchange of cash. A CDS operates much like an insurance policy and encompasses portfolios of synthetic
credit exposure for investment-grade obligations. Credit default swaps can also provide protection for
a specific bond.
Credit-Linked Notes (CLN)
These are bonds whose issuers do not have to own the underlying assets. A credit-linked note isolates the
issuer from the asset by establishing a trust known as a special-purpose vehicle. The performance of a
credit-linked note is indexed to the performance of the underlying assets.
To discuss synthetic securitizations opportunities inside the U.S.,
contact Chris Curran, Senior Vice President, Capital Markets, +1 215 231.1041.
For opportunities outside the U.S., contact Jeff Cashmer, Senior Vice President, International Mortgage, +1 215 231.1256.
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